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CSSB 131(L&C): "An Act amending the Alaska Wage and Hour Act as it relates to the employment of a person acting in a supervisory capacity or in an administrative, executive, or professional capacity; relating to definitions under the Alaska Wage and Hour Act and providing definitions for persons employed in administrative, executive, and professional capacities, for persons working in the capacity of an outside salesman, for persons working in the capacity of a salesman employed on a straight commission basis, and for persons that perform computer-related occupations; and providing for an effective date."

00 CS FOR SENATE BILL NO. 131(L&C) 01 "An Act amending the Alaska Wage and Hour Act as it relates to the employment of a 02 person acting in a supervisory capacity or in an administrative, executive, or 03 professional capacity; relating to definitions under the Alaska Wage and Hour Act and 04 providing definitions for persons employed in administrative, executive, and 05 professional capacities, for persons working in the capacity of an outside salesman, for 06 persons working in the capacity of a salesman employed on a straight commission basis, 07 and for persons that perform computer-related occupations; and providing for an 08 effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. AS 23.10.055 is amended to read: 11 Sec. 23.10.055. Exemptions; compensation of executives, administrators, 12 and professionals. The provisions of AS 23.10.050 - 23.10.150 do not apply to 13 (1) an individual employed in agriculture, which includes farming in

01 all its branches and, among other things, includes the cultivation and tillage of the soil, 02 dairying, the production, cultivation, growing, and harvesting of any agricultural or 03 horticultural commodities, the raising of livestock, bees, fur-bearing animals, or 04 poultry, and any practices, including forestry and lumbering operations, performed by 05 a farmer or on a farm as an incident to or in conjunction with the farming operations, 06 including preparation for market, or delivery to storage or to market or to carriers for 07 transportation to market; 08 (2) an individual employed in the catching, trapping, cultivating or 09 farming, netting, or taking of any kind of fish, shellfish, or other aquatic forms of 10 animal and vegetable life; 11 (3) an individual employed in the hand picking of shrimp; 12 (4) an individual employed in domestic service, including a baby- 13 sitter, in or about a private home; 14 (5) an individual employed by the United States or by the state or a 15 political subdivision of the state, except as provided in AS 23.10.065(b), including 16 prisoners not on furlough detained or confined in prison facilities; 17 (6) an individual engaged in the nonprofit activities of a nonprofit 18 religious, charitable, cemetery, or educational organization or other nonprofit 19 organization where the employer-employee relationship does not, in fact, exist, and 20 where services rendered to the organization are on a voluntary basis and are related 21 only to the organization's nonprofit activities; for purposes of this paragraph, 22 "nonprofit activities" means activities for which the nonprofit organization does not 23 incur a liability for unrelated business income tax under 26 U.S.C. 513, as amended; 24 (7) an employee engaged in the delivery of newspapers to the 25 consumer; 26 (8) an individual employed solely as a watchman or caretaker of a 27 plant or property that is not in productive use for a period of four months or more; 28 (9) an individual employed 29 (A) in a bona fide executive, administrative, or professional 30 capacity; 31 (B) [OR] in the capacity of an outside salesman or a salesman

01 who is employed on a straight commission basis; or 02 (C) as a computer systems analyst, computer programmer, 03 software engineer, or other similarly skilled worker; 04 (10) an individual employed in the search for placer or hard rock 05 minerals; 06 (11) an individual under 18 years of age employed on a part-time basis 07 not more than 30 hours in a week; 08 (12) employment by a nonprofit educational or child care facility to 09 serve as a parent of children while the children are in residence at the facility if the 10 employment requires residence at the facility and is compensated on a cash basis 11 exclusive of room and board at an annual rate of not less than 12 (A) $10,000 for an unmarried person; or 13 (B) $15,000 for a married couple; 14 (13) an individual who drives a taxicab, is compensated for taxicab 15 services exclusively by customers of the service, whose written contractual 16 arrangements with owners of taxicab vehicles, taxicab permits, or radio dispatch 17 services are based upon flat contractual rates and not based on a percentage share of 18 the individual's receipts from customers, and whose written contract with owners of 19 taxicab vehicles, taxicab permits, or radio dispatch services specifically provides that 20 the contract places no restrictions on hours worked by the individual or on areas in 21 which the individual may work except to comply with local ordinances; 22 (14) a person who holds a license under AS 08.54 and who is 23 employed by a registered guide or master guide licensed under AS 08.54, for the first 24 60 workdays [WORK DAYS] in which the person is employed by the registered 25 guide or master guide during a calendar year; 26 (15) an individual engaged in activities for a nonprofit religious, 27 charitable, civic, cemetery, recreational, or educational organization where the 28 employer-employee relationship does not, in fact, exist, and where services are 29 rendered to the organization under a work activity requirement of AS 47.27 (Alaska 30 temporary assistance program); 31 (16) an individual who

01 (A) provides emergency medical services only on a voluntary 02 basis; 03 (B) serves with a full-time fire department only on a voluntary 04 basis; or 05 (C) provides ski patrol services on a voluntary basis; or 06 (17) a student participating in a University of Alaska practicum 07 described under AS 14.40.065. 08 * Sec. 2. AS 23.10.055 is amended by adding new subsections to read: 09 (b) Notwithstanding (c) of this section, an individual employed in a bona fide 10 executive, administrative, or professional capacity shall be compensated on a salary or 11 fee basis at a rate of not less than two times the state minimum wage for the first 40 12 hours of employment each week, exclusive of board or lodging that is furnished by the 13 individual's employer. 14 (c) In (a)(9) of this section, 15 (1) "bona fide executive, administrative, or professional capacity" has 16 the meaning and shall be interpreted in accordance with 29 U.S.C. 201 - 219 (Fair 17 Labor Standards Act of 1938), as amended, or the regulations adopted under those 18 sections; 19 (2) "computer systems analyst, computer programmer, software 20 engineer, or other similarly skilled worker" has the meaning and shall be interpreted in 21 accordance with 29 U.S.C. 201 - 219 (Fair Labor Standards Act of 1938), as amended, 22 or the regulations adopted under those sections; 23 (3) "outside salesman" means an employee 24 (A) who is customarily and regularly away from the employer's 25 place of business; and 26 (B) whose primary duty is making sales or contracts for sales, 27 consignments, or shipment, or obtaining orders for service or for use of 28 facilities for which consideration will be paid by the client or customer; 29 (4) "salesman who is employed on a straight commission basis" means 30 an employee 31 (A) who is customarily and regularly employed on the business

01 premises of the employer; 02 (B) who is compensated on a straight commission basis for the 03 purpose of making sales or contracts for sales, consignments, shipments, or 04 obtaining orders for services or the use of facilities for which a consideration 05 will be paid by the client or customer; and 06 (C) whose primary duty is making sales or contracts for sales, 07 consignments, shipments, or obtaining orders for service or the use of facilities 08 for which a consideration will be paid by the client or customer. 09 * Sec. 3. AS 23.10.060(a) is amended to read: 10 (a) An employer who employs employees engaged in commerce or other 11 business, or in the production of goods or materials in the state, may not employ an 12 employee for a workweek longer than 40 hours or for more than eight hours a day. 13 [THIS SECTION DOES NOT APPLY TO THE EMPLOYMENT OF A PERSON 14 ACTING IN A SUPERVISORY CAPACITY.] 15 * Sec. 4. AS 23.10.085(b) is amended to read: 16 (b) The regulations may, without limiting the generality of (a) of this section, 17 define terms used in AS 23.10.050 - 23.10.150, and restrict or prohibit industrial 18 homework or other acts or practices that the director finds appropriate to carry out the 19 purpose of AS 23.10.050 - 23.10.150, or to prevent the circumvention or evasion of 20 AS 23.10.050 - 23.10.150. [IF THE REGULATIONS DEFINING AN INDIVIDUAL 21 EMPLOYED IN A BONA FIDE EXECUTIVE, ADMINISTRATIVE, OR 22 PROFESSIONAL CAPACITY FOR PURPOSES OF AS 23.10.055 REQUIRE THAT 23 THE INDIVIDUAL RECEIVE A MINIMUM SALARY, THE REQUIRED 24 MINIMUM SALARY MUST BE TWO TIMES THE STATE MINIMUM WAGE 25 FOR THE FIRST 40 HOURS OF EMPLOYMENT EACH WEEK.] 26 * Sec. 5. AS 23.10.145 is amended to read: 27 Sec. 23.10.145. Definitions. If not defined in this title or in regulations 28 adopted under this title, terms used in AS 23.10.050 - 23.10.150 shall be defined as 29 they are defined in 29 U.S.C. 201 - 219 ( [THE FEDERAL] Fair Labor Standards Act 30 of 1938), as amended, or the regulations adopted under those sections [IT]. 31 * Sec. 6. This Act takes effect July 1, 2005.